Everything you need to know about GSTR-1: Guide By BTHAWK

What is GSTR-1?

GSTR-1 is a form that summarizes all the outward supply of goods. It is a monthly, or sometimes quarterly return that is needed to be filed by every registered trader and contains details of all sales (outward supplies). In simple terms, any individual that is involved in the supply of goods is required to specify details of the supply as well as the recipient too. GSTR-1 is the first step that affects other GST forms which is why you need to fill it with almost care.

Basics of GSTR-1

It is mandatory for all those registered with the GST regime to file GST returns in order to comply with GST requirements. These returns help in calculating the amount of tax that you are required to for sale and supply. In order to file GST return, you are required to GST-compliant invoices of sales and purchases. The GSTR-1 is one of the most important GST related forms as the information filed under GSTR-1 is used as a foundation which auto-populates all other forms. 

GSTR-1 Liability

Every registered trader/supplier is liable to filing GSTR-1. This form is mandatory irrespective of sales or purchase for a particular period, which means that even if there are zero transactions in a month, a registered trader will have to file GSTR-1. However, there are certain exemptions provided under the GST regime.

An input service distributor (ISD) is a category that includes businesses that receive invoices for services used by their branches. These businesses are exempted from filing GSTR-1.

A composition dealer is one who has registered his/her business under the composition scheme of GST. Businesses that have an annual turnover of up to Rs 1.5 crore are eligible to opt for composition scheme. 

An online information, database access or retrieval supplier are exempted for GSTR-1.

Traders who import goods and services from outside India or manage a business on behalf of an NRI fall under non-resident taxable persons and are exempted from filing GSTR-1.

Late fees norms of GSTR-1

Similar to all other tax filing, GSTR-1 also comes with a due date before which it is needed to be filed. Every trader is needed to fill GSTR-1 form by the 10th of every month in order to meet GSTR-1 due date and avoid late fees. However, only businesses with a turnover of Rs 1.5 crore are required to fill this form every month. Those who have a turnover of less than Rs 1.5 crore are needed to fill the form on a quarterly basis i.e. the last day of that particular period. 

Those who fail in filling the GSTR-1 by the due date are liable for a penalty of Rs 50 and Rs 20 per day for failing to comply with the GST norms. The latter is applicable on those who have nil returns to file.  

Thing to keep in mind while filing GSTR-1

Filing tax returns is no child’s play. However, if you keep following things in mind, you may avoid mistakes.

• Make sure you entered correct GSTIN and HSN codes
• Make sure you mark correct interstate and intrastate category
• Bills can be changed multiple times before submitting the return
• Corrections in the return can only be made in next month after filing the return
• Avoid bulk upload of invoices
• You cannot make changes to the tax invoice once the recipient has accepted the details of GSTR-1 https://bthawk.blogspot.com/2020/05/how-to-check-tdstcs-tax-credit.html